(Yicai Global) May 24 -- Yi Huiman, chairman of the China Securities Regulatory Commission, said over the weekend that there is “zero tolerance” for manipulation of stock prices, after a series of listed firms were accused of trying to artificially boost their market valuation. Those involved will be dealt with strictly, and details will be released to the public in a timely manner, Yi said.

Ye Fei, a former practitioner in the private equity industry, disclosed evidence of stock price manipulation by 18 listed companies on Weibo on May 14, saying that several brokerages including Shenwan Hongyuan Securities, Minsheng Securities, TF Securities, and Hengtai Securities were also involved. The news caused widespread concern in the capital market and shares in the companies and brokers involved soon slumped.

The CSRC said it would investigate and that it attached great importance to the issue. Some of the companies Ye accused, including Guangzhou Haozhi Industrial, Shandong Longji Machinery, and Visionox Technology, said they had received letters from stock exchange authorities.

Yi said that stock price manipulation is a worrying issue in both domestic and foreign markets and is a key area for regulation.

Editor: Tom Litting